We did it! Our net worth has finally exceeded $100,000! We are officially financial orange belts (sign up for the newsletter to check out the belt rank). The market stayed strong in February and we saw some decent gains in our investment accounts. All we need is a little hiccup and we’ll be back below $100k, but it feels nice to have hit this goal.
We’re 10% of the way to our million dollar goal. They say that the first $100k is the hardest so I’m hoping $200k comes even quicker. I’m going to remove our cars and everything else we could sell once we have enough money to stay above $100k without those things. I do feel like cars and household items are fine to include in your net worth but I’m just going to calculate paper assets and our home equity eventually.
Going through our expenses made me realize something this month. I’m spending way too much money on snacks/drinks each week! I’m putting this out publicly to help me stay accountable and hopefully cut out these stupid little expenses. Food is definitely my biggest weakness so I’m challenging myself to do better this month. I usually get a drink or snack anytime I stop at a gas station so I’m going to cut that out and see what kind of impact it has on our expenses.
I’m also trying to lower our power bill. It was $239.00 this month! I’ve started turning off the heat during the day so that should cut it down significantly. I’ll just put on more clothes.
- Started the month with a net worth of $97,349.43
- Job income = $3,071.88
- eBay income = $899.08
- Wife’s income = $800.00
- Antique Booth income = $215.00
- Additional income = $0.00
- Credit card travel points earned for the month = 5,347 (I’m not including the cash value of these points in my net worth, just want to track it).
- Total net income = $4,985.98
- Monthly expenses = $3,239.31
- Total saved = $1,746.67
- Total investment gains/losses = +$2,215.97 (This includes my 401k contributions + employer match).
What our net worth consists of:
- Investments = $36,442.95 (all in Vanguard funds.)
- Investment breakdown:
- My 401k = $6,074.18
- My Roth IRA = $13,813.23
- Wife’s IRA = $16,555.54
- Cars = $23,000
- Home equity = $ 17,500.29 (I’m calculating this as if we could sell our house for $110,000.00 and subtracting 10% for seller fees. Then subtracting what we owe – $81,499.71)
- Everything we own that could be sold = $15,000
- Emergency fund = $7,535.60
- Cash = $1,307.33
- Balances on credit cards = $-583.06 (This is today’s balance and will be paid off in full by the due date.)
- Total net worth as of today’s calculations = $100,203.11
- Total net worth increase/decrease = +$2,853.68
If you’d like to start tracking your net worth, sign up for a free Personal Capital account! I love Personal Capital because it allows you to connect all of your financial accounts and track your net worth in one place. It’s super easy to use.
When you factor in our 10% tithe, we saved 45% of our income this month. Not as awesome as some people, but we’re barely making a median income so I’m happy with this amount.
I did ask for a raise this month so maybe I’ll have a higher income in next months report! Still waiting to hear back from my boss. I decided to man up and send my boss the statistics on the average salary for my job title.
I’m currently being paid about $14,000 less than the market average according to Glassdoor. All I did was send my boss an email with a screen shot of the market rate and told him I’m happy working for this company, but wanted his thoughts on my compensation and asked if the market rate was a realistic number to ask for as a salary reevaluation.
All he said was “send me an updated resume and I’ll see what I can do.” So, that sounds somewhat promising? It’s been a few days, so hopefully I’ll hear something soon and he won’t forget.
If I do get a significant raise, the extra money is going to go straight to my 401k account. If I put all the money into a traditional 401k, I won’t have to pay any taxes on it until I hit retirement.
To explain how that works, I’m making $45,000 a year right now. If I get a $10,000 raise and contribute an extra $10,000 into my 401k, the $10,000 I contribute lowers my taxable income for the year back down to $45,000. The IRS doesn’t include contributions to traditional 401ks or IRAs as taxable income.
Nathan created Millionaire Dojo to document his journey to reaching a million dollar net worth and inspire others to follow the same path. Go here to read how he intends to become a millionaire and reach financial independence. If you’d like to contact Nathan, you can do so here.